Highlights:● The iPad Mini will force Android tablets to compete on software. Apple has a big advantage here thanks to the iPhone operating system.● The iPad Mini will probably cost $299. The iPad 2 costs $399, while the iPod Touch costs $199, so the new tablet will probably fall somewhere between.● The iPad Mini could decimate Android tablet sales. It could take 30 percent of total Android tablet sales in the December quarter.

"We had previously expected a smaller iPad in March 2013, but believe the Street generally expected the device this year. We now believe AAPL could sell 4-6 million of the smaller devices in the December quarter, which would be about 20% of total iPad sales in the quarter. Strategically, we believe the launch of a smaller screen, cheaper iPad eliminates the two biggest unique features for Android tablet makers: size and price. Longer term, we remain confident that Apple will maintain a majority, and potentially increasing, share in the tablet space. We reiterate our Overweight rating."

Both the WSJ and Bloomberg have confirmed that Apple plans to release an iPad mini this year.

That's the typical 'business school' thinking, but it's likely to replace the iTouch, and it's a race to the least profitable product. It may sell well, but it might potentially damage Apple's reputation for quality if not handled well. So far, it's looking like they're planning on limiting it (3G) instead of making it a smaller iPad.

Apple may disclose any information we have about you (including your identity) if we determine that such disclosure is necessary in connection with any investigation or complaint regarding your use of the Site, or to identify, contact or bring legal action against someone who may be causing injury to or interference with (either intentionally or unintentionally) Appleâs rights or property, or the rights or property of visitors to or users of the Site, including Appleâs customers. Apple reserves the right at all times to disclose any information that Apple deems necessary to comply with any applicable law, regulation, legal process or governmental request. Apple also may disclose your information when Apple determines that applicable law requires or permits such disclosure, including exchanging information with other companies and organizations for fraud protection purposes.